Practical difficulties associated with constructing a residential investment portfolio

The residential private rented sector (PRS) represents a major investment opportunity for individuals, corporates and institutions following the sector’s deregulation in 1988. Yet the sector retains historic perception problems by institutions. The development or expansion of a portfolio introduces a further range of costs and difficulties above those typically associated with acquisition in the commercial sector. Various mandatory and voluntary codes operate, acting as further regulatory factors. Difficulties with performance measurement, particularly indices, are highlighted and the applicability of financial market models is questioned.